Shares of Tyson Foods crashed Friday after a brokerage firm said a class-action suit against the largest killer of animals for food in the U.S. looks “powerfully convincing.” The suit alleges Tyson colluded with competitors to inflate prices by reducing production.
The brokerage analyst wrote that “the class-action suit has merit and will lead to intense scrutiny of the broiler sector.” Other animal agriculture companies could be exposed and suffer as well as a result of Tyson’s alleged crimes. If Tyson loses the suit, it could cost the company millions of dollars and further damage its atrocious reputation.
The brokerage downgraded Tyson’s stock from a “buy” to a “sell” rating and reduced its price target from $100 to $40. The stock is currently priced at $67.75 after the precipitous Friday drop which leaves significant room for additional panic selling this week.